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What stops them is the lack of incentive. Because fares are regulated and customers have very little control over who their next driver will be, there's litera

What stops them is the lack of incentive. Because fares are regulated and customers have very little control over who their next driver will be, there's literally no incentive to do anything more than the minimum necessary -- they won't earn any more. Quite the contrary, if they don't push for big tips or fill their cars with ads, they'll earn less!

prawn 11y ago
Uber coming at them should be incentive enough. People speaking favourably of Uber and less so of taxis should be incentive enough. The entrenched always spend more on a gradually weakening defence of their turf than they do on improving or going on the attack. Mainstream news (newspapers, etc) are the same. I feel for the guys who bought the medallions but are somehow pinned under a brand or group that won't innovate. The investment in the medallion prevents them from just driving for Uber, but the actions of those up the chain doesn't improve their situation at all. Stupid thing is that so many of the things they could/should have done wouldn't have been obscenely expensive.
- netcan 11y ago
  I think what the parent is saying is that you need to watch what you mean when you say "them" in the context of incentive. If a single cab driver or small company stops doing these things he takes 100% of the downside (loses the extra ad and tip revenue) and 1 millionth of the upside (making people like taxis more in general so that the industry can compete with Uber). They don't have repeat business. Customers choose/are sent taxis randomly. Prices are fixed. Hence, there is no way for "signals" to travel up and down rewarding and punishing better and worse operators.
  - SilasX 11y ago
    But they have the possibility of exit, right? They generally don't own the car or medallion, but only rent them, so it's pretty easy for them to jump ship and use their personal car for UberX/Lyft. That in turn should bid down medallion/car rental fees and thus the driver take-home gross, even with constant taxi rates for passengers.

prawn 11y ago

Uber coming at them should be incentive enough. People speaking favourably of Uber and less so of taxis should be incentive enough. The entrenched always spend more on a gradually weakening defence of their turf than they do on improving or going on the attack. Mainstream news (newspapers, etc) are the same. I feel for the guys who bought the medallions but are somehow pinned under a brand or group that won't innovate. The investment in the medallion prevents them from just driving for Uber, but the actions of those up the chain doesn't improve their situation at all. Stupid thing is that so many of the things they could/should have done wouldn't have been obscenely expensive.

netcan 11y ago
I think what the parent is saying is that you need to watch what you mean when you say "them" in the context of incentive. If a single cab driver or small company stops doing these things he takes 100% of the downside (loses the extra ad and tip revenue) and 1 millionth of the upside (making people like taxis more in general so that the industry can compete with Uber). They don't have repeat business. Customers choose/are sent taxis randomly. Prices are fixed. Hence, there is no way for "signals" to travel up and down rewarding and punishing better and worse operators.
- SilasX 11y ago
  But they have the possibility of exit, right? They generally don't own the car or medallion, but only rent them, so it's pretty easy for them to jump ship and use their personal car for UberX/Lyft. That in turn should bid down medallion/car rental fees and thus the driver take-home gross, even with constant taxi rates for passengers.